Chase Freedom Unlimited: A Quick Review

Sorry, I meant to post a quick review of the new for 2016 Chase Freedom Unlimited card. Here is what you need to know.

Rewards Program and Signup Offer:

The Chase Freedom Unlimited is a brand new 1.5% cash back card from Chase. Unlike the regular Chase Freedom cards, you can earn cash back on all your purchases. No rotating bonus categories. No quarterly sign up requirement.

Unlimited 1.5% cash back on every purchase — it's automatic

Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening

Earn a $25 bonus when you add your first authorized user and make your first purchase within this same 3-month period.

0% Intro APR for 15 months on purchases and balance transfers. After the intro period, a variable APR of 14.24-23.24%. Balance transfer fee is 5% of the amount transferred, $5 minimum

Redeem for cash — any amount, anytime

Cash Back rewards do not expire as long as your account is open

No annual fee

Credit Required:

You will need excellent credit to qualify for the Chase Freedom Unlimited.

The Transfer Fee:

I just want to point out that the generous 15-month 0% APR transfer offer is accompanied by a 5% transfer fee. If you are looking for a balance transfer card, this is not the one for you. The industry standard is 3% (e.g., Citi DoubleCash). And you can even find a few 0% transfer fee cards (Capital One has a few, inclusive the QuickSilver One card.)

You Can Use Points as Ultimate Rewards Points Instead:

With this card, you will not need to redeem your points as cash back. You will have the option to let them accumulate and use them as Ultimate Rewards points. For some travel hackers, this may make the Freedom Unlimited quite a nice complementary card to the Sapphire Preferred card.

Freedom vs. Freedom Unlimited?

If I had to choose one card between the standard Freedom card vs. the new Freedom Unlimited, I would choose Freedom Unlimited. Why? Well, I have a known bias towards late rate cash back cards. I just think you will earn more rewards over time if you use only one card. And I think rotating rewards require you to work to maximize your points - while also encouraging you to overspend in bonus categories.

So the Freedom Unlimited frees you from monitoring quarterly bonus categories and the regular sign up requirement.

Of course, nothing is stopping you from using both card (after all, neither has an annual fee). That would obviously maximize the cash back you can earn from Chase.

Sounds like this could undermine CSP. Why pay the $99 annual fee and only get limited 2x bonus categories in travel and at restaurants. You can earn more UR points with Freedom Unlimited. (One appreciation I'm staying away from. )

Sounds like this could undermine CSP. Why pay the $99 annual fee and only get limited 2x bonus categories in travel and at restaurants. You can earn more UR points with Freedom Unlimited. (One appreciation I'm staying away from. )

They are starting to advertise this card heavily. Will this mean the end of the Freedom card with rotating rewards?

I think they will keep both cards. And I suspect that they will have a lot of people who carry both. They know people with excellent credit often use multiple cards to max out their potential rewards. So you'll see people use the regular Freedom card to take advantage of the bonus rewards, and Freedom Unlimited for everything else.

And then you link your accounts, and it is one stop shopping for bill payments, account management, and receiving rewards. Great benefits, simple and easy to manage.